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rate of depreciation

rate of depreciation

5.1
The percentage by which property or equipment loses value over a period for accounting
  • noun
  • /reɪt əv dɪˌpriːʃiˈeɪʃən/
  • Specialized
translation icon : tasa de depreciación
  • A low value, 0.05, implies an initial rate of depreciation of 2 percent per year.

Examples

  • Between 1985-86 and 1987-88, the rate of depreciation was very small and the real exchange rate appreciated.

    Academic text (1994)
  • This is done by assuming that a particular proportion, o, of existing capacity will be taken out of operation in each period until it is scrapped (6 is the rate of depreciation used in the determination of the above discount factors); thus:

    Academic text (1991)
  • Letting o be the rate of depreciation (to be discussed shortly), and using the expected future interest rates, we can define expected discount factors Ptau, t + LD as:

    Academic text (1991)
  • The accountant calculated the rate of depreciation on the company's assets to ensure accurate financial reporting.

  • Understanding the rate of depreciation is crucial for investors when evaluating the long-term value of an asset.

  • For tax purposes, businesses must accurately report the rate of depreciation on their equipment each year.

Synonyms

depreciation
vsrate of depreciation
  • Specialized
15 6.3

Loss of value of something like a car as it gets older or wears out

is the specific numeric loss per period rather than the general value decrease
depreciation rate
vsrate of depreciation
  • Specialized
5.3

A measure of how quickly things like cars or machines lose value over time, often used for tax

is the percent or amount lost in a specific period rather than the speed

Antonyms

appreciation
  • Specialized
17 4.2

An increase in the value of something over time

Surface Forms

Morphology

rate + of + depreciation

The noun phrase combines 'rate' (measured amount or speed) with 'depreciation' (decline in value) in a straightforward 'rate of X' compositional pattern, so the meaning — how quickly an asset loses value — is directly derivable from the constituents. This construction is common cross-linguistically and follows standard English noun modification, making it immediately comprehensible to a B1 learner who knows the component words.

Etymology

Rate of depreciation gives a clear image: imagine a new car that loses value each year. The rate is how fast that loss happens and depreciation is the loss itself, so the phrase means 'the percentage or amount by which something loses value over time'.